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d




    5
converging crises




 the end of economic growth




                              6
converging crises




            the end of economic growth


                 e energ y
           extrem
a n age of


                                         7
converging crises




                 e energ y   a clima
           extrem                   te in
a n age of                                ux


                                               8
9
10
reindeer on St. Matthew




             0                    29
          1940                  1944     1957   1963   1964   1966   1980s



source: Journal of Wildlife Management

                                                                             11
reindeer on St. Matthew




                                         1,350




             0                    29
          1940                  1944     1957    1963   1964   1966   1980s



source: Journal of Wildlife Management

                                                                              11
reindeer on St. Matthew
                                                 6,000




                                         1,350




             0                    29
          1940                  1944     1957    1963    1964   1966   1980s



source: Journal of Wildlife Management

                                                                               11
reindeer on St. Matthew
                                                 6,000




                                         1,350




             0                    29                     42
          1940                  1944     1957    1963    1964   1966   1980s



source: Journal of Wildlife Management

                                                                               11
reindeer on St. Matthew
                                                 6,000




                                         1,350




             0                    29                     42     42
          1940                  1944     1957    1963    1964   1966   1980s



source: Journal of Wildlife Management

                                                                               11
reindeer on St. Matthew
                                                 6,000




                                         1,350




             0                    29                     42     42      0
          1940                  1944     1957    1963    1964   1966   1980s



source: Journal of Wildlife Management

                                                                               11
12
humans on Earth
          7 billion
                                                        2010: my son born
          6 billion


          5 billion


          4 billion
                                                     1972: I was born
          3 billion


          2 billion


          1 billion


          0 billion
                  1K BCE   500 BCE   1 CE   500 CE       1K CE          1500 CE   Now



source: wikipedia

                                                                                        13
humans on Earth
          7 billion


          6 billion


                                                         00 = 10
          5 billion
                                                    f 1,0
                                               1% o
          4 billion


          3 billion


          2 billion


          1 billion


          0 billion
                  1K BCE   500 BCE   1 CE   500 CE      1K CE      1500 CE   Now



source: wikipedia

                                                                                   14
humans on Earth
          7 billion


          6 billion


                                                             00 = 10
          5 billion
                                                        f 1,0
                                                   1% o
                                                                    mil lion
          4 billion                                           10
                                                     illio n=
                                              %o f1b
          3 billion
                                            1
          2 billion


          1 billion


          0 billion
                  1K BCE   500 BCE   1 CE       500 CE      1K CE      1500 CE   Now



source: wikipedia

                                                                                       15
a GROWING problem
    real GDP           damming of rivers           water use        fertilizer consumption




paper consumption       motor vehicles            telephones          atmospheric CO2




                                                                                             source: IGBP, Steffen et al 2004
 ozone depletion    natural climate disasters   biodiversity loss




                                                                                             16
17
18
how many planets do we need?


                                                                 1.6 earths




                   1961            1970   1980   1990   2000   2008



source: Global Footprint Network

                                                                              19
20
copyright Sebastião Salgado

                              21
oil




      22
oil
coal




             23
oil
coal




       natural gas
                           24
25
26
27
28
29
30
31
32
US energy consumption
                              Biomass (Wood)   Coal          Natural Gas      Petroleum      Hydro     Nuclear


                    100



                     80
  quadrillion BTU




                     60



                     40



                     20



                      0
                       1705            1755           1805             1855           1905           1955        2005



source: US Energy Information Agency

                                                                                                                        33
34
d




    35
36
converging crises




   the end of        the age of    a climate
economic growth   extreme energy    in ux




                                               37
38
winning the energy lottery




                             39
M. King Hubbert




                  40
Hubbert’s peak




                 41
US oil discoveries & production
                                                              discoveries (lower 48)            oil production

                                40,000                                                                                         12,000




                                                                                                                                        production (million barrels)
discoveries (million barrels)




                                30,000                                                                                         9,000




                                20,000                                                                                         6,000




                                10,000                                                                                         3,000




                                         1900   1910   1920   1930      1940     1950   1960   1970    1980      1990   2000




                                                                                                                                                                 42
world oil discoveries
                                                 recoverable reserves   number of elds discovered


                           400
reserves, in gigabarrels




                           300




                           200




                           100




                             0
                                 1850-1900     1910s            1930s   1950s           1970s       1990s




                                                                                                            43
global crude oil production

                      75
million barrels/day




                      73




                      71




                      68




                      66
                        2002   2003   2004   2005   2006   2007   2008   2009




                                                                                44
45
46
47
the oil price trap

   Oil price
                                    Minimum oil
 needed for
                                     price likely
development
                                      to trigger
  of new oil
                                      economic
 production
                                     recession:
  capacity:
                                       $100
    $70




                                                    48
oil prices & recessions
                              recessions                    oil prices

             $150



             $120
USD/barrel




             $90



             $60



             $30



              $0
                1970   1975   1980         1985   1990   1995      2000   2005   2010




                                                                                        49
good riddance, right?




                        50
]
                                            T   IVE
                                       PERA
                          TIO   N IM
                 SE   RVA
            ON


            OR
 [   T HE C



         GF
       IN E
     CH CL
  EAR IRA
S
   AM




                                                          g
                                                   inber e r
                                           rd He y M a n d
                                by Richa y J e r r
                                      rd b
                                        wo
                                Fore

                                                                                               tute.
                                                                                       bonInsti
                                                                                 ostCar
                                                                     ationandtheP
                                                          on Globaliz
                                           Forum        r2009
                                    ational es#4Septembe
                            eIntern        ri ]
                  rojectofth alseSolutionSe
           AJointP         [F
                                                                                                       51
evaluating alternatives
- size of resource




                                 52
evaluating alternatives
- size of resource
- infrastructure requirements




                                 53
evaluating alternatives
- size of resource
- infrastructure requirements
- convenience of use




                                 54
evaluating alternatives
- size of resource
- infrastructure requirements
- convenience of use
- environmental impact




                                 55
evaluating alternatives
- size of resource
- infrastructure requirements
- convenience of use
- environmental impact
- renewability




                                 56
evaluating alternatives
- size of resource
- infrastructure requirements
- convenience of use
- environmental impact
- renewability
- scalability



                                  57
evaluating alternatives
- size of resource
- infrastructure requirements
- convenience of use
- environmental impact
- renewability
- scalability
- location of resource

                                  58
59
the tough reality


              ere is
       no credible scenario
in which alternative energy sources
    can make up for fossil fuels
       once declines begin.




                                      60
PCI Fellows




              61
key conclusions
- we have hit the limits to growth




                                     62
key conclusions
- we have hit the limits to growth
- no issue can be addressed in isolation




                                           63
key conclusions
- we have hit the limits to growth
- no issue can be addressed in isolation
- we must focus on responses, not just solutions




                                                   64
key conclusions
- we have hit the limits to growth
- no issue can be addressed in isolation
- we must focus on responses, not just solutions
- we must prepare for business unusual




                                                   65
key conclusions
- we have hit the limits to growth
- no issue can be addressed in isolation
- we must focus on responses, not just solutions
- we must prepare for business unusual
- we must build resilience




                                                   66
resilience
the ability to absorb shocks
 and continue to function




                               67
68
managing the transition



     not a question of if
    but a question of how




                            69
great transitions
              re                   language



agriculture
                   industrialism

                                     now




                                              70
crisis = opportunity



is is the biggest opportunity
        of our lifetimes.

      Who will seize it?



                                 71

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Say Buh Bye to Status Quo or Why We Need to Build Resilience

  • 1. 1
  • 2. 2
  • 3. 3
  • 4. 4
  • 5. d 5
  • 6. converging crises the end of economic growth 6
  • 7. converging crises the end of economic growth e energ y extrem a n age of 7
  • 8. converging crises e energ y a clima extrem te in a n age of ux 8
  • 9. 9
  • 10. 10
  • 11. reindeer on St. Matthew 0 29 1940 1944 1957 1963 1964 1966 1980s source: Journal of Wildlife Management 11
  • 12. reindeer on St. Matthew 1,350 0 29 1940 1944 1957 1963 1964 1966 1980s source: Journal of Wildlife Management 11
  • 13. reindeer on St. Matthew 6,000 1,350 0 29 1940 1944 1957 1963 1964 1966 1980s source: Journal of Wildlife Management 11
  • 14. reindeer on St. Matthew 6,000 1,350 0 29 42 1940 1944 1957 1963 1964 1966 1980s source: Journal of Wildlife Management 11
  • 15. reindeer on St. Matthew 6,000 1,350 0 29 42 42 1940 1944 1957 1963 1964 1966 1980s source: Journal of Wildlife Management 11
  • 16. reindeer on St. Matthew 6,000 1,350 0 29 42 42 0 1940 1944 1957 1963 1964 1966 1980s source: Journal of Wildlife Management 11
  • 17. 12
  • 18. humans on Earth 7 billion 2010: my son born 6 billion 5 billion 4 billion 1972: I was born 3 billion 2 billion 1 billion 0 billion 1K BCE 500 BCE 1 CE 500 CE 1K CE 1500 CE Now source: wikipedia 13
  • 19. humans on Earth 7 billion 6 billion 00 = 10 5 billion f 1,0 1% o 4 billion 3 billion 2 billion 1 billion 0 billion 1K BCE 500 BCE 1 CE 500 CE 1K CE 1500 CE Now source: wikipedia 14
  • 20. humans on Earth 7 billion 6 billion 00 = 10 5 billion f 1,0 1% o mil lion 4 billion 10 illio n= %o f1b 3 billion 1 2 billion 1 billion 0 billion 1K BCE 500 BCE 1 CE 500 CE 1K CE 1500 CE Now source: wikipedia 15
  • 21. a GROWING problem real GDP damming of rivers water use fertilizer consumption paper consumption motor vehicles telephones atmospheric CO2 source: IGBP, Steffen et al 2004 ozone depletion natural climate disasters biodiversity loss 16
  • 22. 17
  • 23. 18
  • 24. how many planets do we need? 1.6 earths 1961 1970 1980 1990 2000 2008 source: Global Footprint Network 19
  • 25. 20
  • 27. oil 22
  • 28. oil coal 23
  • 29. oil coal natural gas 24
  • 30. 25
  • 31. 26
  • 32. 27
  • 33. 28
  • 34. 29
  • 35. 30
  • 36. 31
  • 37. 32
  • 38. US energy consumption Biomass (Wood) Coal Natural Gas Petroleum Hydro Nuclear 100 80 quadrillion BTU 60 40 20 0 1705 1755 1805 1855 1905 1955 2005 source: US Energy Information Agency 33
  • 39. 34
  • 40. d 35
  • 41. 36
  • 42. converging crises the end of the age of a climate economic growth extreme energy in ux 37
  • 43. 38
  • 44. winning the energy lottery 39
  • 47. US oil discoveries & production discoveries (lower 48) oil production 40,000 12,000 production (million barrels) discoveries (million barrels) 30,000 9,000 20,000 6,000 10,000 3,000 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 42
  • 48. world oil discoveries recoverable reserves number of elds discovered 400 reserves, in gigabarrels 300 200 100 0 1850-1900 1910s 1930s 1950s 1970s 1990s 43
  • 49. global crude oil production 75 million barrels/day 73 71 68 66 2002 2003 2004 2005 2006 2007 2008 2009 44
  • 50. 45
  • 51. 46
  • 52. 47
  • 53. the oil price trap Oil price Minimum oil needed for price likely development to trigger of new oil economic production recession: capacity: $100 $70 48
  • 54. oil prices & recessions recessions oil prices $150 $120 USD/barrel $90 $60 $30 $0 1970 1975 1980 1985 1990 1995 2000 2005 2010 49
  • 56. ] T IVE PERA TIO N IM SE RVA ON OR [ T HE C GF IN E CH CL EAR IRA S AM g inber e r rd He y M a n d by Richa y J e r r rd b wo Fore tute. bonInsti ostCar ationandtheP on Globaliz Forum r2009 ational es#4Septembe eIntern ri ] rojectofth alseSolutionSe AJointP [F 51
  • 58. evaluating alternatives - size of resource - infrastructure requirements 53
  • 59. evaluating alternatives - size of resource - infrastructure requirements - convenience of use 54
  • 60. evaluating alternatives - size of resource - infrastructure requirements - convenience of use - environmental impact 55
  • 61. evaluating alternatives - size of resource - infrastructure requirements - convenience of use - environmental impact - renewability 56
  • 62. evaluating alternatives - size of resource - infrastructure requirements - convenience of use - environmental impact - renewability - scalability 57
  • 63. evaluating alternatives - size of resource - infrastructure requirements - convenience of use - environmental impact - renewability - scalability - location of resource 58
  • 64. 59
  • 65. the tough reality ere is no credible scenario in which alternative energy sources can make up for fossil fuels once declines begin. 60
  • 67. key conclusions - we have hit the limits to growth 62
  • 68. key conclusions - we have hit the limits to growth - no issue can be addressed in isolation 63
  • 69. key conclusions - we have hit the limits to growth - no issue can be addressed in isolation - we must focus on responses, not just solutions 64
  • 70. key conclusions - we have hit the limits to growth - no issue can be addressed in isolation - we must focus on responses, not just solutions - we must prepare for business unusual 65
  • 71. key conclusions - we have hit the limits to growth - no issue can be addressed in isolation - we must focus on responses, not just solutions - we must prepare for business unusual - we must build resilience 66
  • 72. resilience the ability to absorb shocks and continue to function 67
  • 73. 68
  • 74. managing the transition not a question of if but a question of how 69
  • 75. great transitions re language agriculture industrialism now 70
  • 76. crisis = opportunity is is the biggest opportunity of our lifetimes. Who will seize it? 71